SoFi Technologies (NASDAQ:SOFI) Shares Down 6% - Here's What Happened

Key Points

• SoFi shares fell 6% on Wednesday, with traders appearing to fade the recent crypto-product rally and reassess risk in growth-oriented fintech stocks.
• The company is still drawing attention for positive fundamentals, including its new AI-powered SoFi Coach product and a stretch of 10 straight quarters of GAAP profitability, which keeps it in the conversation for S&P 500 eligibility.
• Wall Street sentiment remains mixed: analysts currently have an average Hold rating with a consensus target price of $22.56, while SoFi recently beat quarterly revenue estimates and posted 42.6% year-over-year revenue growth.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s stock price was down 6% on Wednesday . The stock traded as low as $16.58 and last traded at $16.68. Approximately 72,717,184 shares changed hands during trading, an increase of 12% from the average daily volume of 65,090,617 shares. The stock had previously closed at $17.74.

Key SoFi Technologies News

Here are the key news stories impacting SoFi Technologies this week:

• Positive Sentiment: SoFi continues to roll out new AI-driven products, including SoFi Coach, an AI-powered financial guide that helps members budget, save, invest, and track finances inside the app. Introducing SoFi Coach: An AI-Powered Financial Guide to Help Members Get Their Money Right
• Positive Sentiment: SoFi’s recent financial progress keeps it on the radar for S&P 500 eligibility, since it has now posted its tenth straight quarter of GAAP profitability and meets the market-cap requirement, which could boost demand if index inclusion follows. SoFi’s S&P 500 Eligibility Puts Valuation And Momentum In Focus
• Neutral Sentiment: Commentary from market personalities and comparisons with other fintech stocks are keeping SoFi in the spotlight, but these pieces do not directly change fundamentals. Jim Cramer Wonders Whether SoFi (SOFI) Being Up Is Short Seller Covering
• Neutral Sentiment: Articles comparing SoFi with peers such as Nu Holdings and HOOD suggest investors are still evaluating which fintech has the best upside, but these are mostly relative-value discussions. Better Fintech Stock for Growth Investors: Nu Holdings vs. SoFi
• Negative Sentiment: Shares are lower as traders fade the recent crypto-product pop and reassess risk in growth-oriented fintech stocks, which is the clearest driver of today’s weakness. SoFi Stock Is Sliding Wednesday: What's Driving The Move?

Analysts Set New Price Targets

A number of equities research analysts recently commented on SOFI shares. JPMorgan Chase & Co. raised SoFi Technologies from a "neutral" rating to an "overweight" rating and set a $31.00 target price for the company in a report on Tuesday, February 3rd. Keefe, Bruyette & Woods decreased their target price on shares of SoFi Technologies from $20.00 to $17.00 and set an "underperform" rating for the company in a research note on Thursday, April 9th. Barclays decreased their target price on shares of SoFi Technologies from $28.00 to $18.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Wells Fargo & Company decreased their target price on shares of SoFi Technologies from $19.00 to $18.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $18.00 target price on shares of SoFi Technologies in a research note on Thursday, April 30th. Seven equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $22.56.

SoFi Technologies Price Performance

The company has a quick ratio of 0.13, a current ratio of 0.75 and a debt-to-equity ratio of 0.17. The stock's 50-day simple moving average is $16.72 and its two-hundred day simple moving average is $21.50. The company has a market capitalization of $21.40 billion, a price-to-earnings ratio of 37.91 and a beta of 2.14.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $0.12 earnings per share for the quarter, hitting analysts' consensus estimates of $0.12. The company had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.05 billion. SoFi Technologies had a net margin of 14.65% and a return on equity of 6.25%. The firm's revenue for the quarter was up 42.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.06 earnings per share. SoFi Technologies has set its FY 2026 guidance at 0.600- EPS. Equities research analysts predict that SoFi Technologies, Inc. will post 0.59 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Anthony Noto acquired 28,900 shares of SoFi Technologies stock in a transaction on Tuesday, March 17th. The stock was bought at an average cost of $17.32 per share, for a total transaction of $500,548.00. Following the completion of the transaction, the chief executive officer owned 11,704,352 shares of the company's stock, valued at approximately $202,719,376.64. The trade was a 0.25% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Kelli Keough sold 10,037 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $15.53, for a total transaction of $155,874.61. Following the transaction, the executive vice president owned 323,247 shares of the company's stock, valued at $5,020,025.91. This represents a 3.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 124,479 shares of company stock worth $2,163,556. Company insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On SoFi Technologies

A number of large investors have recently modified their holdings of SOFI. Brighton Jones LLC grew its holdings in shares of SoFi Technologies by 2.0% during the fourth quarter. Brighton Jones LLC now owns 719,288 shares of the company's stock worth $11,077,000 after buying an additional 14,281 shares in the last quarter. Caxton Associates LLP purchased a new stake in shares of SoFi Technologies during the first quarter worth $129,000. Empowered Funds LLC grew its holdings in shares of SoFi Technologies by 5.2% during the first quarter. Empowered Funds LLC now owns 33,126 shares of the company's stock worth $385,000 after buying an additional 1,631 shares in the last quarter. Franklin Resources Inc. grew its holdings in shares of SoFi Technologies by 23.2% during the second quarter. Franklin Resources Inc. now owns 13,796 shares of the company's stock worth $251,000 after buying an additional 2,596 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of SoFi Technologies during the second quarter worth $4,633,000. Hedge funds and other institutional investors own 38.43% of the company's stock.

About SoFi Technologies

SoFi Technologies, Inc NASDAQ: SOFI is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company's core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.

SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.

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